Definition of Globalization

This morning you woke up and put on a polo shirt that read 'made in China' on the inside tag.
You then went to your garage and got in a car that had parts that were manufactured in all
parts of the world. You drove that car to the grocery store where you bought grapes that were
grown in Chile, sugar from Jamaica, and curry from India. You did all of this because of
globalization. In this lesson, you will learn the meaning of globalization, some of its positive and
negative effects, and some real examples of globalization.

While flipping through your TV channels you may stop at the various business channels, and in
your brief stop at that channel you may view a panel discussing globalization in the
marketplace. Even in the news, there is always a story that discusses the economic
ramifications of globalization. Globalization is defined in a variety of ways depending on the
circumstances. In general it refers to the opening of local and nationalistic perspectives to a
broader outlook of an interconnected and inter-dependent world with the free flow of capital,
goods, and services across national frontiers. This can be interpreted as meaning the
integration of world politics, economies and cultures from one country or countries upon
another country or countries. This integration also includes and is not limited to countries'
political, cultural, educational, and perhaps religious views. In practical terms it can also refer to
the relinquishing of any trade barriers or tariffs that results in uninhibited economic
development across all countries. Globalization in this context often refers to the idea that
instead of having many different markets, all the world is one gigantic market.